Types of Trading: Fundamentals You Should Know

There are several types of trading in financial markets, and they vary based on strategy and the time frame used. The most important of these types:

Day Trading: Requires opening and closing positions within the same day with the aim of making quick profits.

Swing Trading: Relies on predicting market movements over several days or weeks.

Position Trading: Requires holding positions for a long period that may extend to years.

Margin Trading: In this type, traders use borrowed funds to increase the size of their trades.

Choosing the right type depends on financial goals and the risk level that the trader can bear.